Tesla and SpaceX have unveiled plans for Terafab, a joint semiconductor plant in Grimes County, Texas, that would span more than 100 million square feet and start with a $16.8 billion investment. The facility is intended to make AI-optimized logic and memory chips for Tesla's Full Self-Driving program, Optimus humanoid robots, Cybercab robotaxis and SpaceX data operations, with a production goal of about 1 terawatt of compute capacity each year. The project has backing from Texas Governor Greg Abbott and has won local approval for tax incentives, while promising at least 3,000 regional jobs. It also fits the broader U.S. push to bring chip manufacturing home under the CHIPS and Science Act (U.S. semiconductor subsidy law), although residents have raised environmental concerns over plans to draw water from Gibbons Creek Reservoir. Intel has been cited for possible process technology support, but any collaboration remains undefined, and the full $119 billion buildout would rank Terafab among the largest industrial capital spending projects, compared with about $65 billion of planned investment for TSMC's Arizona fabs.